(78 units + retail) – Minneapolis, MN
District 600 is a 78-unit Class A apartment complex being constructed in the urban North Loop neighborhood of downtown Minneapolis. In addition to the apartments, the ground floor houses 4,464 of retail/commercial space and parking for 58 cars.
RSRC believes by opportunistically acquiring the Property via a pre-sale structure, we can build to a stabilized cap rate of 6.5% in year two of the investment hold without taking on construction risk, when this type of Class A asset in the North Loop currently trades in the 4.5% – 5.0% cap range (150bps – 200bps spread to current cap rates).
The property consists of a six-story elevator building clad in brick and metal to mimic the surrounding warehouses. There is a community room along with a rooftop common area on the top floor of the property. Other amenities include a fitness center and onsite management office. Of the 78 units, 69 are one-bedroom floor plans and nine are two-bedroom. Average size of the apartments is 737 square feet. Unit finishes include stainless steel appliances, granite stone counters, vinyl plank flooring and front load washer/dryers.
|Project Capitalization / Loan (LTV):||$ 17,050,000 / $13,100,000 (77%)|
|Acquisition Date:||July – 2016|